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 PHILIPPINES

The Philippines will remain on the Watch List in 2009 with an OCR review to be conducted this year. The United States is troubled by the amendments to the patent provisions in the Philippines Intellectual Property Law only as they apply to pharmaceuticals. The amendment significantly weakens patent protection for pharmaceutical products. Unfortunately, despite the continuing efforts of some Philippine officials – notably, in the Intellectual Property Office, Optical Media Board, and Customs – to improve enforcement there is no true deterrent mechanism in place to dissuade IPR infringers from their illegal activities. Additionally, the digital environment has created more challenges that the Government has not addressed, such as peer-to-peer piracy, mobile device piracy, and illegal camcording. The United States urges the Government to put in place mechanisms and laws that will address the weaknesses in its current system, such as specialized IP courts and legislation to implement the WIPO Internet Treaties and to address illegal camcording.

POLAND

Poland will remain on the Watch List in 2009 and the United States will conduct an OCR to monitor progress on IPR protection and enforcement. The OCR will focus in particular on Poland's implementation of the National IPR Action Plan for 2008-2010 issued by Poland's Team for Counteracting Infringements of Copyright and Related Rights. The development of this plan may reflect a renewed Polish Government commitment to addressing persistent IPR problems. The United States recognizes: the police closure in early 2009 of one of the largest pirated optical disc distribution operations in Europe; the Government closure in 2007 of the notorious Warsaw Stadium market, where large quantities of counterfeit and pirated goods were being sold; and the efforts by law enforcement agencies to combat hard goods piracy. Poland has yet to make adequate progress against Internet piracy and the trade in pirated and counterfeit goods in markets on Poland's border with Germany. The U.S. copyright industries report that raids conducted at these border markets in early 2008 by Poland's Border Guard have begun to have a positive effect, but sustained enforcement actions are needed. In addition, Poland should take concrete steps to achieve its goal of increasing the effectiveness of criminal proceedings and prosecutions of IPR crimes, including encouraging its prosecutors and judges to seek and impose deterrent-level sentences. The United States encourages Poland to commit additional resources and attention to addressing these IPR protection and enforcement issues. We will monitor Poland's implementation of its National IPR Action Plan through the OCR.

ROMANIA

Romania will remain on the Watch List in 2009. Romania took some positive steps in 2008, including establishing an electronic IPR database to facilitate the sharing of information between its law enforcement and customs authorities, as well as improving the speed at which Internet piracy cases were processed for prosecution. There was a decrease in illegal optical discs sold by street vendors, but Internet piracy continued to grow in 2008. The ability to prosecute successfully IPR crimes remains weak. Although some courts imposed jail sentences for IPR violations in 2008, Romanian judges often dismiss IPR cases due to a perceived "lack of social